Marriott International Inc. (NASDAQ:MAR)

The financial data indicates several notable trends and fluctuations over the analyzed five-year period.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios show a significant decline from 2.38 and 2.32 respectively in 2015 to around 0.84 by 2019. This decrease suggests a reduction in efficiency in utilizing assets to generate sales revenue over time.

Current Ratio

The reported and adjusted current ratios reveal modest improvement from 0.43 and 0.44 in 2015 to approximately 0.47 and 0.49 in 2019. While still below 1, these ratios indicate a slight enhancement in short-term liquidity position during the period.

Debt to Equity Ratio

This ratio, reported only from 2016 onwards, exhibits a pronounced increase from roughly 1.59 (reported) in 2016 to an exceptionally high 15.56 in 2019. Adjusted figures similarly rise but remain lower than reported levels, peaking at 6.37 in 2019. The trend signals a marked increase in leverage and reliance on debt financing relative to shareholders’ equity, especially pronounced in the latest year.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios increase progressively from below 1 in 2016 to 0.94 and 0.86 respectively in 2019. This implies debt constitutes a growing proportion of the overall capital structure, consistent with the increased debt to equity ratios.

Financial Leverage

The reported financial leverage ratio shows a steep rise from 4.51 in 2016 to an extraordinary 35.63 in 2019, with adjusted leverage also growing substantially, albeit at a more moderate pace, reaching 13.32 in 2019. This reflects a rapidly increasing use of debt relative to equity, amplifying financial risk in recent years.

Net Profit Margin

The net profit margin demonstrates fluctuations, falling from about 5.93% in 2015 to a low in 2016, then improving significantly to peaks of 9.19% (reported) in 2018 before declining again to just over 6% in 2019. Adjusted net margin trends are similar but somewhat more volatile, suggesting variability in operational efficiency or cost management.

Return on Equity (ROE)

Reported ROE rises dramatically from 14.56% in 2016 to an exceptionally high 181.08% in 2019, reflecting a substantial increase in shareholders’ returns, albeit potentially influenced by increased financial leverage. Adjusted ROE values also increase but remain more subdued, reaching 68.16% in 2019, indicating that some adjustments mitigate these extreme levels.

Return on Assets (ROA)

Reported ROA decreases sharply from 14.12% in 2015 to 3.23% in 2016 before recovering to 8.05% in 2018 and then declining again to approximately 5% in 2019. Adjusted ROA follows a similar trajectory but remains slightly lower in later years, implying asset profitability has experienced volatility but not sustained growth across the span.

Overall, the data depicts a company with declining asset turnover and moderate liquidity improvements, alongside substantially increased leverage ratios. Profitability metrics have been variable, with a marked increase in return on equity driven largely by heightened financial leverage, while asset returns demonstrate instability. These findings suggest growing financial risk and possible shifts in capital structure strategy during the analyzed period.

The financial data reflects a series of trends in revenues, total assets, and asset turnover ratios over the period from 2015 to 2019.

Revenues

Revenues increased notably from 2015 to 2017, rising from 14,486 million USD to 22,894 million USD, reflecting strong growth during these years. However, from 2017 onward, revenues slightly declined to 20,758 million USD in 2018 and remained relatively stable at 20,972 million USD in 2019.

Total Assets

Total assets experienced a dramatic increase from 6,082 million USD in 2015 to 24,140 million USD in 2016, representing a fourfold growth in one year. Following this sharp rise, total assets remained relatively stable with minor fluctuations, ending at 25,051 million USD in 2019.

Reported Total Asset Turnover

The reported total asset turnover ratio declined sharply from 2.38 in 2015 to 0.71 in 2016, corresponding to the large increase in total assets that year. Following the initial drop, the ratio showed a gradual recovery to 0.96 in 2017 but then decreased again to 0.88 in 2018 and further to 0.84 in 2019, indicating a diminishing efficiency in generating revenues from assets over this period.

Adjusted Revenues

The pattern of adjusted revenues mirrors the reported revenues closely, with an increase from 14,486 million USD in 2015 to 22,894 million USD in 2017, followed by a decline to 20,904 million USD in 2018 and stabilization around 21,101 million USD in 2019.

Adjusted Total Assets

Adjusted total assets increased significantly from 6,241 million USD in 2015 to 25,452 million USD in 2016 and continued rising to 25,703 million USD in 2017. Thereafter, values slightly decreased and stabilized, ending near 24,973 million USD in 2019. This trend is consistent with the reported total assets figures.

Adjusted Total Asset Turnover

This ratio also witnessed a sharp decline from 2.32 in 2015 to 0.67 in 2016, consistent with the expansion of asset base. It then increased gradually to 0.89 in 2017 before declining again to 0.83 in 2018 and stabilizing at 0.84 in 2019. The movement reflects a similar trend to the reported total asset turnover, indicating stable but lower asset utilization efficiency compared to the earlier period.

Overall, the data reveals a substantial asset base expansion principally between 2015 and 2016, which significantly altered the asset turnover metrics. Revenues grew strongly until 2017 but thereafter showed signs of stabilization or slight decline. The total asset turnover ratios (both reported and adjusted) declined sharply with increased assets and have shown partial recovery followed by stabilization at lower levels, indicating a reduced relative efficiency in asset utilization over the latest years.

Current Assets

The current assets exhibited volatility over the analyzed period. Beginning at $1,384 million in 2015, they experienced a substantial increase to $3,371 million in 2016, followed by declines to $2,747 million in 2017 and $2,706 million in 2018. A recovery is observed in 2019 with an increase to $3,127 million.

Current Liabilities

Current liabilities showed a consistent upward trend, rising steadily from $3,233 million in 2015 to $6,677 million in 2019. This nearly doubled liability base suggests increasing short-term obligations over the period.

Reported Current Ratio

The reported current ratio, indicating liquidity, remained below 1.0 throughout the period, demonstrating that current liabilities consistently exceeded current assets. It increased from 0.43 in 2015 to a peak of 0.65 in 2016, then declined to 0.42 in 2018 before a slight improvement to 0.47 in 2019. This pattern suggests fluctuating but overall weak liquidity positions.

Adjusted Current Assets and Liabilities

The adjusted current assets closely mirror the reported current assets, with marginally higher figures each year, reflecting potential adjustments such as excluding less liquid items. Adjusted current liabilities are slightly lower than reported liabilities in the final two years, possibly due to adjustments for certain short-term obligations.

Adjusted Current Ratio

The adjusted current ratio follows a similar trajectory as the reported ratio, starting at 0.44 in 2015, peaking at 0.66 in 2016, dipping to 0.44 in 2018, and increasing moderately to 0.49 in 2019. These ratios reaffirm weak liquidity but suggest that adjustments provide a marginally better liquidity perspective.

Overall Insights

The analysis reveals a company facing liquidity challenges with current liabilities increasing substantially over the five years, outpacing the growth in current assets. The liquidity ratios consistently below 1.0 indicate potential difficulty in covering short-term obligations solely with current assets. The peak in 2016 in both reported and adjusted ratios may reflect a favorable but temporary liquidity improvement. The subsequent declines and only slight recovery in 2019 highlight ongoing pressure on working capital management.

Total Debt

The total debt showed a significant rising trend from 2015 to 2019. Starting at US$4,107 million in 2015, it more than doubled by 2016 to US$8,506 million. Following that, it remained relatively stable in 2017 with a slight decrease to US$8,238 million, before increasing steadily to US$9,347 million in 2018 and reaching US$10,940 million in 2019.

Shareholders’ Equity (Deficit)

The shareholders’ equity experienced substantial fluctuations over the period. There was a negative equity position in 2015 at -US$3,590 million, which reversed to a positive US$5,357 million in 2016. Subsequently, equity declined continuously each year, decreasing to US$3,731 million in 2017, US$2,225 million in 2018, and nearly approaching a deficit again in 2019 at US$703 million.

Reported Debt to Equity Ratio

This ratio demonstrates increasing leverage and financial risk over time. It was not reported for 2015 but rose from 1.59 in 2016 to 2.21 in 2017, then saw a substantial increase to 4.20 in 2018, and sharply escalated to 15.56 by 2019. This indicates that debt levels grew disproportionately relative to equity, especially in the last two years.

Adjusted Total Debt

The adjusted total debt followed a similar upward trajectory to reported total debt. It increased from US$4,913 million in 2015 to US$9,914 million in 2016, rose slightly to US$10,057 million in 2017, continued climbing to US$10,968 million in 2018, and reached US$11,952 million in 2019. This suggests additional liabilities or adjustments considered in the adjusted figure also increased steadily over the period.

Adjusted Shareholders’ Equity (Deficit)

The adjusted equity values similarly reflect volatility but remained positive from 2016 onward after starting at a deficit of -US$4,221 million in 2015. It increased to US$6,281 million in 2016, then decreased consistently to US$4,271 million in 2017, US$3,436 million in 2018, and US$1,875 million in 2019. The decline over the last three years indicates erosion in net asset value after adjustments.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio again reveals a pattern of increased leverage. Beginning at 1.58 in 2016, the ratio rose to 2.35 in 2017, then increased further to 3.19 in 2018. It continued escalating, reaching 6.37 in 2019. Although lower than the reported ratio, the trend is consistent in showing increasing reliance on debt financing relative to adjusted equity.

Total Debt

The total debt exhibits a significant increase from 2015 to 2019. Starting at 4,107 million USD in 2015, it more than doubled to 8,506 million USD in 2016, then slightly decreased in 2017 before trending upward again, reaching 10,940 million USD in 2019. This indicates a continuous accumulation of debt over the five-year period with a minor dip in 2017.

Total Capital

Total capital experienced a sharp increase from 517 million USD in 2015 to 13,863 million USD in 2016. Subsequently, it showed a declining trend over the next three years, decreasing to 11,969 million USD in 2017, 11,572 million USD in 2018, and finally 11,643 million USD in 2019. The initial surge followed by a moderate decline suggests a major capital restructuring or acquisition in 2016, with stabilization afterward.

Reported Debt to Capital Ratio

The reported debt to capital ratio drastically shifted from a very high level of 7.94 in 2015 to a much lower 0.61 in 2016. It then displayed a gradual increase each year, rising to 0.69 in 2017, 0.81 in 2018, and 0.94 in 2019. This pattern implies a substantial improvement in the balance between debt and capital in 2016, followed by a steady increase in leverage over time.

Adjusted Total Debt

The adjusted total debt mirrors the trend observed in total debt, increasing from 4,913 million USD in 2015 to 9,914 million USD in 2016, continuing to grow to 10,057 million USD in 2017, 10,968 million USD in 2018, and peaking at 11,952 million USD in 2019. The persistent increase indicates rising adjusted debt obligations.

Adjusted Total Capital

Adjusted total capital rose notably from 692 million USD in 2015 to 16,195 million USD in 2016. After this peak, it decreased over the following years to 14,328 million USD in 2017, 14,404 million USD in 2018, and 13,827 million USD in 2019. The pattern correlates with the total capital figures, evidencing a major growth event in 2016 followed by a gradual reduction and relative stability.

Adjusted Debt to Capital Ratio

This ratio decreased sharply from 7.1 in 2015 to 0.61 in 2016, maintaining the low level before progressively climbing to 0.7 in 2017, 0.76 in 2018, and 0.86 in 2019. The trend suggests improved leverage management post-2015, with a cautious increase in debt relative to capital in subsequent years.

Overall Analysis

The period from 2015 to 2019 is characterized by a dramatic improvement in the relationship between debt and capital in 2016, likely driven by significant changes in capitalization. Following this, debt levels have steadily increased while capital slightly declined after the peak, resulting in incremental increases in leverage ratios. The company appears to have managed leverage carefully after the 2016 adjustment, but with a tendency towards higher leverage in recent years.

The analysis of the financial data reveals significant fluctuations and trends in the company’s financial position over the five-year period.

Total Assets

Total assets experienced rapid growth from 6,082 million USD in 2015 to a peak of 24,140 million USD in 2016, after which the values stabilized around the 23,000 to 25,000 million USD range through 2019.

Shareholders’ Equity (Deficit)

Shareholders’ equity showed a notable improvement from a deficit of 3,590 million USD in 2015 to a positive 5,357 million USD in 2016. However, this was followed by a downward trend, declining steadily to 703 million USD by 2019, indicating decreasing net assets attributable to equity holders.

Reported Financial Leverage

The reported financial leverage ratio, available from 2016 onwards, increased markedly from 4.51 in 2016 to 35.63 in 2019. This escalating leverage suggests a growing reliance on debt financing relative to equity, which could indicate increased financial risk.

Adjusted Total Assets

Adjusted total assets followed a similar trend to total assets, increasing sharply from 6,241 million USD in 2015 to 25,452 million USD in 2016, then stabilizing near 25,000 million USD through 2019.

Adjusted Shareholders’ Equity (Deficit)

Adjusted shareholders’ equity mirrored the pattern of the reported equity, improving from a deficit of 4,221 million USD in 2015 to a positive 6,281 million USD in 2016, then declining subsequently to 1,875 million USD by 2019. Despite the decrease, the adjusted equity remained positive in the later years, contrasting with the reported figures.

Adjusted Financial Leverage

The adjusted financial leverage ratio rose from 4.05 in 2016 to 13.32 in 2019. While this trend also indicates increased leverage, the magnitude is considerably lower than that of reported financial leverage, suggesting that adjustments mitigate some of the apparent risk in the reported figures.

Overall, the data indicates an initial phase of rapid growth in asset base accompanied by recovery from equity deficits. However, the subsequent period is characterized by a steady decrease in shareholders’ equity and a substantial increase in financial leverage, highlighting growing financial risk. The adjusted figures provide a somewhat less severe but consistent view of these trends. The company appears to be operating with increased financial leverage, which may impact its resilience and risk profile going forward.

Net Income

The net income displayed a fluctuating trend over the five-year period. It initially decreased from 859 million US dollars in 2015 to 780 million in 2016. Following this decline, the net income showed a significant increase, reaching a peak of 1907 million US dollars in 2018, before declining again to 1273 million in 2019. This suggests variability in profitability with a strong recovery phase and subsequent moderation.

Revenues

Revenues experienced overall growth from 2015 to 2019, increasing from 14,486 million US dollars to 20,972 million. A notable surge occurred between 2016 and 2017, where revenues rose by approximately 34% from 17,072 to 22,894 million. However, there was a decline in 2018 to 20,758 million, followed by a marginal increase in 2019. The pattern indicates some volatility but with an overall upward trajectory in revenue generation.

Reported Net Profit Margin

The reported net profit margin demonstrated variability with an initial decline from 5.93% in 2015 to 4.57% in 2016. It improved markedly to 9.19% in 2018, the highest point in the period, and then decreased to 6.07% in 2019. This fluctuation reveals periods of improved operational efficiency or cost management, followed by some erosion in margin.

Adjusted Net Income

Adjusted net income shows a less consistent pattern compared to reported net income. It declined sharply to 578 million in 2016 from 864 million in 2015, surged to a peak of 1742 million in 2017, then slightly decreased to 1594 million in 2018, ending at 1278 million in 2019. The adjusted figures also indicate profitability fluctuations but with an earlier peak in 2017 than the reported net income.

Adjusted Revenues

Adjusted revenues closely follow the trend of reported revenues, increasing significantly from 14,486 million in 2015 to 22,894 million in 2017, then experiencing a slight decline in 2018 to 20,904 million, followed by a minor increase in 2019 to 21,101 million. This consistency suggests reliability in revenue reporting methodologies.

Adjusted Net Profit Margin

The adjusted net profit margin reveals notable volatility, with a sharp decline from 5.96% in 2015 to 3.39% in 2016, followed by a strong increase to 7.61% in 2017 and remaining relatively stable at 7.63% in 2018. In 2019, it declined again to 6.06%. The margin trends correlate with adjusted net income changes and indicate periods of enhanced profitability adjusted for non-recurring items or one-time effects.

An analysis of the financial data over the five-year period reveals several noteworthy trends and fluctuations in profitability and equity measures.

Net Income

The net income shows a fluctuating upward trend from 2015 through 2018, increasing from $859 million in 2015 to a peak of $1,907 million in 2018. However, in 2019, there is a notable decline to $1,273 million. This suggests strong growth in profitability initially, followed by a significant reduction in the latest year reported.

Shareholders’ Equity (Deficit)

Shareholders' equity presents considerable volatility. Starting with a deficit of -$3,590 million in 2015, it shifts to a positive $5,357 million in 2016, then declines steadily over the subsequent years to $703 million in 2019. The sharp shift from negative to positive equity and then the continuous decrease indicates possible capital structure changes or asset revaluations impacting the equity base.

Reported Return on Equity (ROE)

The reported ROE is unavailable for 2015 but shows a progressive and dramatic increase from 14.56% in 2016 to 181.08% in 2019. This remarkable rise suggests that despite the diminishing shareholders' equity, net income relative to equity grew substantially, reflecting potentially high financial leverage or operational efficiency enhancements.

Adjusted Net Income

Adjusted net income follows a slightly different pattern compared to reported net income. It declines from $864 million in 2015 to $578 million in 2016, then peaks at $1,742 million in 2017 before decreasing again in 2018 and 2019 to $1,594 million and $1,278 million, respectively. These adjustments appear to moderate some of the volatility seen in reported figures.

Adjusted Shareholders’ Equity (Deficit)

Adjusted shareholders’ equity mirrors the trend seen in the unadjusted equity figures, moving from a deficit of -$4,221 million in 2015 to a positive $6,281 million in 2016, then gradually declining to $1,875 million in 2019. The pattern reaffirms the presence of significant equity restructuring or adjustments over the years.

Adjusted Return on Equity

Adjusted ROE, also not reported in 2015, increases from 9.2% in 2016 to a high of 68.16% in 2019, with a peak at 46.39% in 2018. The adjusted ROE growth is less volatile than the reported ROE but still shows strong improvement in profitability relative to adjusted equity.

Overall, the data portrays a company experiencing considerable changes in equity positions, accompanied by increasing returns on equity, reflecting effective utilization of shareholders’ funds despite a challenge in maintaining consistent net income growth in the latest year. The adjusted figures provide a more tempered view of income and returns, suggesting that the company may be managing exceptional items or accounting adjustments affecting reported results.

The financial data reveals distinct patterns and fluctuations over the five-year period under review.

Net Income

Net income shows variability, starting at 859 million USD in 2015, decreasing to 780 million USD in 2016, then significantly increasing to 1,372 million USD in 2017 and peaking at 1,907 million USD in 2018, followed by a decline to 1,273 million USD in 2019. This indicates an overall growth trend up to 2018, with a notable reduction in the last year.

Total Assets

Total assets experienced a sharp increase from 6,082 million USD in 2015 to 24,140 million USD in 2016, maintaining a relatively stable range around 23,696 to 25,051 million USD through to 2019. This sharp rise suggests a major asset acquisition or revaluation occurred between 2015 and 2016, after which the asset base stabilized.

Reported Return on Assets (ROA)

The reported ROA declined steeply from 14.12% in 2015 to 3.23% in 2016, reflecting the rapid increase in total assets and comparatively lower net income in 2016. Subsequently, ROA improved gradually, reaching 8.05% by 2018 before falling again to 5.08% in 2019. This pattern indicates a diminishing efficiency in asset utilization especially after the 2015 baseline.

Adjusted Net Income

Adjusted net income follows a somewhat similar trend to net income but with some differences. It begins at 864 million USD in 2015, drops to 578 million USD in 2016, then rises sharply to 1,742 million USD in 2017. Unlike net income, it decreases slightly in 2018 to 1,594 million USD and again falls to 1,278 million USD in 2019, signaling a less pronounced peak and more conservative adjustment.

Adjusted Total Assets

Adjusted total assets increase from 6,241 million USD in 2015 to a peak of 25,703 million USD in 2017, then slightly decline and stabilize around 24,973 million USD by 2019. This denotes a similar pattern to total assets but with a smoother growth and stabilization over time, possibly accounting for certain asset adjustments or reclassifications.

Adjusted Return on Assets (ROA)

The adjusted ROA starts at 13.84% in 2015, declines substantially to 2.27% in 2016, then recovers to 6.78% in 2017, followed by a slight decrease to 6.32% in 2018 and further to 5.12% in 2019. This trend mirrors the reported ROA trajectory but reflects additional adjustments affecting profitability and asset base considerations.

Overall, the data highlights a significant expansion of asset base between 2015 and 2016 with associated decreases in returns on assets, suggesting initial dilution of profitability relative to asset size. Subsequent periods show improvement in profitability metrics, albeit with some volatility, indicating an evolving capacity to leverage assets effectively. The divergence between reported and adjusted figures suggests impacts from accounting adjustments, which moderately smooth and temper profitability and asset trends. The decline in net income and ROA in the final year suggests potential challenges or a transition phase requiring further attention.